Subject category:
Production and Operations Management
Published by:
IBS Center for Management Research
Abstract
This case is about the US-based online retailer Amazon.com Inc (Amazon). It illustrates the Amazon fulfillment center's storage system and contemplates its storage practices, which are in total contrast to the traditional practices of storing products by characteristics and attributes. The case also highlights the advantages and disadvantages of Amazon's practices of storing its products by available shelf or storage space, though a few products are exempt from the rule. This presents a picture of 'organized' confusion to anyone who steps into Amazon’s warehouse. However, Amazon has been largely successful in redefining the way the products were effectively stored and retrieved in the warehouse. This case discusses the critical success factors that help operations managers to develop a decision framework for a warehouse storage system in the supply chain context.
About
Abstract
This case is about the US-based online retailer Amazon.com Inc (Amazon). It illustrates the Amazon fulfillment center's storage system and contemplates its storage practices, which are in total contrast to the traditional practices of storing products by characteristics and attributes. The case also highlights the advantages and disadvantages of Amazon's practices of storing its products by available shelf or storage space, though a few products are exempt from the rule. This presents a picture of 'organized' confusion to anyone who steps into Amazon’s warehouse. However, Amazon has been largely successful in redefining the way the products were effectively stored and retrieved in the warehouse. This case discusses the critical success factors that help operations managers to develop a decision framework for a warehouse storage system in the supply chain context.